Moody's lowers Wall Street Systems

Moody's Investors Service said it downgraded Wall Street Systems Delaware, Inc.'s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

Moody's also said it downgraded the ratings on the company's senior secured first-lien bank facility to B3 (LGD 3) from B2 (LGS 3).

The downgrades reflect the deterioration in Wall Street's credit quality following its debt-financed acquisition of Allegro Development Corp. with pro forma debt leverage increasing by more than 1x to about 6.5x, the agency said.

The outlook also was revised to stable from negative.

The ratings are constrained by the company's high pro forma debt leverage of about 6.5x and relatively small scale as a niche provider of software and services for treasury and risk management, Moody's said.

The company's credit profile also is negatively impacted by a degree of volatility in Wall Street's business performance in recent years and near-term expectations of low single digit growth due to the maturation of the company's current target markets, the agency said.

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